Digital Markets, Competition and Consumers Act becomes law – Accountants in WImbledon

The Digital Markets, Competition and Consumers Act has officially received Royal Assent and is now law in the UK. This new legislation focuses on protecting consumers and promoting fair competition, with a particular emphasis on large technology companies. Here’s a breakdown of the key aspects of the Act:

Consumer Protection:

• Clearer Subscriptions: Businesses are now required to provide transparent information regarding subscription costs, notify consumers when trials are ending, and simplify the cancellation process.
• Hidden Fees: All costs, including any hidden fees, must be clearly disclosed upfront. This aims to eliminate unexpected charges during online checkouts.
• Fake Reviews: The Act prohibits fake reviews, ensuring that consumers can trust the feedback they encounter online.

Empowering Regulators:

• Competition and Markets Authority (CMA): The CMA has been granted more authority to prevent large tech companies from unfairly disadvantaging competitors and consumers.
• Market Conduct: The CMA can now establish specific rules for dominant tech companies to ensure fair treatment of users and competitors.

Penalties:

• Significant Fines: Companies that violate these rules may face substantial fines, potentially reaching into the tens of billions of pounds.
• Enforcement: The CMA is empowered to enforce these rules directly, allowing for swift action against violators.

Additional Oversight:

• Road Fuel Prices: The Act also grants new powers to the CMA to monitor road fuel prices, helping to prevent any malpractice in this sector.

In essence, this Act aims to create a fairer and more transparent market environment, particularly in the digital sector. This benefits both consumers and businesses by ensuring honest practices and fair competition.

For more detailed information, visit the official announcement.

For personalized advice on how this legislation might impact your business, get in touch with our Wimbledon accountants. Our team is here to help you navigate these changes and ensure your business remains compliant and competitive.